Business confidence remains depressed | Citypress

This comes just a day after a report showed South Africa’s economy shrunk to pre-pandemic levels in the second quarter of 2022, contracting by 0.7% when compared to the first quarter.The business confidence index conducted by Rand Merchant Bank / Bureau for Economic Research tells a story of a business environment that is made difficult by rising interest rates and inflation, as well as reduced disposable incomes and high levels of unemployment.

The BCI survey conducted between August 10 and 29 remained negative after slipping from 42 index points in the second quarter to 39 points in the third quarter. The survey noted that confidence among retailers and wholesalers remained well above long-term averages due to resilience in consumer spending.

On Thursday, a report on consumer confidence will be released to reveal just how consumers have been responding to a myriad of challenges brought on by increased costs.“None of this is to say that the economy will experience strong growth in the year ahead; external headwinds are mounting, interest rates will continue to rise while the danger of summer power outages is ever-present.

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Business confidence survey shows 61% dissatisfied with business conditions | The CitizenAlthough business confidence keeps falling, the Bureau for Economic Research does not believe that it indicates a protracted recession.
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